DEFINITION of 'Tokyo Stock Exchange - TSE'
The largest stock exchange in Japan, headquartered in its capital city of Tokyo. The Tokyo Stock Exchange (TSE) was established on May 15, 1878. The exchange has more than 2,200 listed companies, with a combined market capitalization at end-2010 of $3.8 trillion, making it the third-largest in the world by this measure. The exchange is home to the largest and best-known Japanese giants with a global presence, including Toyota, Honda and Mitsubishi.
BREAKING DOWN 'Tokyo Stock Exchange - TSE'
At the peak of the Japanese asset price bubble in December, 1989, when the Nikkei 225 index reached a record high of 38,957, the Tokyo Stock Exchange accounted for a staggering 60% of global stock market capitalization. The TSE's combined market capitalization shrank dramatically over the next two decades, as the Japanese economy struggled with a recessionary environment and the Nikkei plunged in value.
The acronym TSE for the Tokyo Stock Exchange should not be confused with Canada's Toronto Stock Exchange, which is known by the acronym TSX.